The government said it will monitor domestic and overseas energy and financial markets around the clock and, if signs of abnormalities occur, will swiftly take necessary measures by using the 100 trillion won-plus alpha (α) market stabilization program under coordination among relevant agencies.
On the 3rd, First Vice Minister of Strategy and Finance Lee Hyeong-il presided over a joint emergency response task force meeting of related agencies and discussed the situation in the Middle East, the impact on domestic and overseas financial markets and the real economy, and future response measures.
Regarding international oil prices, the government said they started sharply higher the previous day but then showed a somewhat reduced gain amid high volatility. On the stock market, it said Asian markets were mixed and the U.S. S&P 500 index rose slightly, but major European stock prices fell, adding that preference for safe assets strengthened and the dollar index rose.
The government also said it decided to respond sternly with a zero-tolerance, one-strike-out principle to unfair practices such as the spread of fake news that rides on investors' anxiety.
On energy supply and demand, it said that although tensions are rising around the Strait of Hormuz, it understands that, so far, there have been no notable safety-related developments involving Korea's vessels in the Middle East region. It added that, however, in case the Strait of Hormuz is shut, it will work to secure non-Middle East (stockpiled oil) volumes.
For affected small and midsize businesses, it said the Export-Import Bank's "special crisis response program" will be activated to offer preferential rates of up to 2.2 percentage points (p) to small and midsize/mid-tier companies, and that Export-Import Bank, Korea Development Bank (KDB), Industrial Bank of Korea, and Korea Credit Guarantee Fund will provide a total 20.3 trillion won in financial support programs.
The Vice Minister said, "We will hold joint emergency response task force meetings of related agencies very until the Middle East situation shows signs of stabilizing."